Gold is winning on the weak dollar

Gold prices rose today, as the dollar retreated after the US Treasury Secretary candidate, Janet Yellen, emphasized the need for a major stimulus to help the economy recover from the Corona virus crisis, which boosted the demand for the yellow metal as a hedge tool.

Spot gold gained 0.6% to 1850.66 dollars an ounce by 0604 GMT.

US gold futures added 0.5% to $ 1,850.

Yesterday, Yellen urged policymakers to approve large spending on aid to alleviate the repercussions of the "Corona" pandemic, adding that the benefits will outweigh the costs of a larger debt burden.

The dollar slipped further from a four-week high it reached earlier this week, while most US Treasury bond yields declined after Yellen called for the cancellation of large corporate tax cuts introduced in 2017.

Lower yields reduce the opportunity cost of owning the precious metal that yields no return.

As for the other precious metals, silver rose 0.8% to $ 25.40 an ounce.

Platinum increased 1.1% to $ 1095.13 and palladium profit 0.6% to $ 2,367.29.

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